Relationship between external wealth, trade balance, and the real exchange rate : a case study on the US.
Lane and Milesi-Ferreti (2002) show that a country’s external wealth, trade balance and the real exchange rate are interrelated. They shown that in the long-run, there is a negative relation between the trade balance and the real exchange rate. And that the magnitude of the trade balance coefficient...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2010
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/42420 |
| _version_ | 1826116465051303936 |
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| author | Chia, Andrew Teck Fatt. Tan, Jessica Pei Ying. Tan, Ming Hui. |
| author2 | Chia Wai Mun |
| author_facet | Chia Wai Mun Chia, Andrew Teck Fatt. Tan, Jessica Pei Ying. Tan, Ming Hui. |
| author_sort | Chia, Andrew Teck Fatt. |
| collection | NTU |
| description | Lane and Milesi-Ferreti (2002) show that a country’s external wealth, trade balance and the real exchange rate are interrelated. They shown that in the long-run, there is a negative relation between the trade balance and the real exchange rate. And that the magnitude of the trade balance coefficient is directly proportional to country size. Inspired by the work of Lane and Milesi-Ferreti (2002), we aim to replicate their work using data of 20 OECD countries from 1970 to 2002 and draw the link between a country’s net foreign asset and its impact on real exchange rate. Besides, we also extend the data set to 2007. Additionally, we work on a case study of the United States (US) and investigate the relationship between the US’s trade position over the years with its 5 major trading partners such as Canada, Japan, China, Mexico and Germany. Finally, we examine the relationship between price of gold and the US dollar exchange rate. |
| first_indexed | 2024-10-01T04:12:09Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/42420 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T04:12:09Z |
| publishDate | 2010 |
| record_format | dspace |
| spelling | ntu-10356/424202019-12-10T12:38:02Z Relationship between external wealth, trade balance, and the real exchange rate : a case study on the US. Chia, Andrew Teck Fatt. Tan, Jessica Pei Ying. Tan, Ming Hui. Chia Wai Mun School of Humanities and Social Sciences DRNTU::Social sciences::Economic theory::International trade Lane and Milesi-Ferreti (2002) show that a country’s external wealth, trade balance and the real exchange rate are interrelated. They shown that in the long-run, there is a negative relation between the trade balance and the real exchange rate. And that the magnitude of the trade balance coefficient is directly proportional to country size. Inspired by the work of Lane and Milesi-Ferreti (2002), we aim to replicate their work using data of 20 OECD countries from 1970 to 2002 and draw the link between a country’s net foreign asset and its impact on real exchange rate. Besides, we also extend the data set to 2007. Additionally, we work on a case study of the United States (US) and investigate the relationship between the US’s trade position over the years with its 5 major trading partners such as Canada, Japan, China, Mexico and Germany. Finally, we examine the relationship between price of gold and the US dollar exchange rate. Bachelor of Arts 2010-12-01T01:30:33Z 2010-12-01T01:30:33Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/42420 en Nanyang Technological University 39 p. application/pdf |
| spellingShingle | DRNTU::Social sciences::Economic theory::International trade Chia, Andrew Teck Fatt. Tan, Jessica Pei Ying. Tan, Ming Hui. Relationship between external wealth, trade balance, and the real exchange rate : a case study on the US. |
| title | Relationship between external wealth, trade balance, and the real exchange rate : a case study on the US. |
| title_full | Relationship between external wealth, trade balance, and the real exchange rate : a case study on the US. |
| title_fullStr | Relationship between external wealth, trade balance, and the real exchange rate : a case study on the US. |
| title_full_unstemmed | Relationship between external wealth, trade balance, and the real exchange rate : a case study on the US. |
| title_short | Relationship between external wealth, trade balance, and the real exchange rate : a case study on the US. |
| title_sort | relationship between external wealth trade balance and the real exchange rate a case study on the us |
| topic | DRNTU::Social sciences::Economic theory::International trade |
| url | http://hdl.handle.net/10356/42420 |
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